Devon Energy is an independent U.S. onshore oil and gas exploration and production (E&P) company. Devon drills wells to extract crude oil, natural gas, and natural gas liquids (NGLs), then sells those commodities to third-party buyers at market prices. Devon's flagship asset is the Delaware Basin in southeast New Mexico and west Texas, which accounts for roughly 60% of total production and is a stacked-pay basin with multiple productive formations including the Wolfcamp and Bone Spring. Devon also operates in the Rockies (Williston and Powder River basins), the Eagle Ford in Texas, and the Anadarko Basin in Oklahoma. Because Devon sells at market prices, revenue and free cash flow are highly sensitive to commodity prices — particularly WTI crude oil. Devon's near-term strategy prioritizes capital efficiency and margin expansion over volume growth, targeting $1B in incremental annual pretax free cash flow by year-end 2026 through operational optimization, midstream contract renegotiations, and AI-driven drilling improvements. Devon also holds a ~15% stake in Fervo Energy, a geothermal company. In February 2026, Devon announced a merger with Coterra Energy, targeting $1B in annual pretax run-rate synergies by year-end 2027. Devon's capital allocation framework prioritizes its fixed dividend, share repurchases, and debt reduction, targeting roughly 70% of free cash flow returned to shareholders.